ANDREW P. GORDON, District Judge.
This matter was removed to this federal court by defendants Wells Fargo Bank, N.A. and Wells Fargo Bank (collectively, "Wells Fargo"). (Dkt. No. 1.) Wells Fargo contends that this court has diversity jurisdiction over the case because defendant Connie Contreras (like Plaintiff, a Nevada resident), is a sham defendant and/or was fraudulently joined to this case to defeat diversity jurisdiction; as such, Ms. Contreras should be disregarded as part of the diversity jurisdiction analysis.
Plaintiff 80 Huntfield Drive Trust ("Huntfield") moved the court to remand the matter to state court, asserting that defendant Contreras was not fraudulently joined. (Dkt. No. 15.) On June 11, 2013, Huntfield filed a Supplement to its Motion to Remand (Dkt. No. 23) arguing that the "prior exclusive jurisdiction" doctrine precludes this court from exercising jurisdiction over this case.
"The prior exclusive jurisdiction doctrine holds that `when one court is exercising in rem [or quasi in rem] jurisdiction over a res, a second court will not assume in rem [or quasi in rem] jurisdiction over the same res.'" Chapman v. Deutsche Nat'l Trust Co. (Chapman I), 651 F.3d 1039, 1043 (9th Cir. 2011) (quoting Marshall v. Marshall, 547 U.S. 293, 311 (2006)). Courts in the Ninth Circuit "are bound to treat the doctrine as a mandatory rule, not a matter of judicial discretion. ... If the doctrine applies, federal courts may not exercise jurisdiction." Id. at 1044.
In Chapman I, the Ninth Circuit certified to the Nevada Supreme Court the questions whether unlawful detainer and quiet title are proceedings in rem, quasi in rem, or in personam under Nevada Law. Id. at 1048. The Nevada Supreme Court recently held that unlawful detainer and quiet title are not in personam proceedings; they are either in rem or quasi in rem in nature. Chapman v. Deutsche Bank Nat'l Trust Co. (Chapman II), ___ P.3d ___, 129 Nev. Adv. Op. 34 at *5 (Nev. May 30, 2013). With this answer, the Ninth Circuit remanded the quiet title case to the federal district court to determine whether or not parallel state proceedings remained pending. Chapman v. Deutsche Bank Nat'l Trust Co. (Chapman III), ___ F. App'x ___, 2013 WL 3157512 at *1 (9th Cir. June 24, 2013). "If the Unlawful Detainer Action remains pending, the Quiet Title Action should be dismissed for lack of subject matter jurisdiction. ... If the state action has terminated, the district court may elect to proceed with the instant action." Id.
The present case is similar to Chapman. Huntfield filed a quiet title action in state District Court in January 2013. On February 11, 2013, Huntfield filed an unlawful detainer action in the Henderson Justice Court. On April 5, 2013, Wells Fargo removed the quiet title action to this court.
Accordingly, the Court hereby ORDERS this case REMANDED to the Eighth Judicial District Court, Clark County, Nevada.